Calculating savings using the goods market equilibrium

Assignment Help Business Economics

Reference no: EM131001029

Calculating savings using the goods market equilibrium. Assume a closed economy (NX=0)

1. Suppose net taxes are $100 billion. Government spending is $125 billion. Investment is $50 billion and consumption is $100 billion. Calculate public savings, private disposable income and national savings.

2. Suppose the budget deficit is $50 billion. National savings are $75 billion. Government spending is $100 billion. Calculate public savings, net taxes and private savings.

Reference no: EM131001029

Questions Cloud

How free trade impacts the equilibrium nominal wage rate : Suppose that in the United States corn production uses land and labor, while beer production uses capital and labor. Labor is mobile between the corn and beer industries, while land is specific to the corn industry and capital is specific to the beer..

Write a test program that promptsthe user to enter a integer : (Display an integer reversed ) Write a method with the following header to displayan integer in reverse order:public static void reverse(int number)For example, reverse(3456) displays 6543. Write a test program that promptsthe user to enter an in..

Find to be most annoying aspect of elevator transportation : What do you consider to be good elevator etiquette? 6. What do you consider to be bad elevator etiquette? What do you find to be the most annoying aspect of elevator transportation

Calculating savings using the goods market equilibrium : Calculating savings using the goods market equilibrium. Assume a closed economy (NX=0). Suppose net taxes are $100 billion. Government spending is $125 billion. Investment is $50 billion and consumption is $100 billion. Calculate public savings, priv..

What is the role of a court with appellate jurisdiction : What does the plaintiff need to file in order to bring a legal action and what are some of the defendant's proper responses? What is the role of a court with appellate jurisdiction? What is jurisdiction? Describe how jurisdiction over a person or pro..

Calculate ending inventory and cost of goods sold : Refer to the situation described in BE 8-6. S&M uses a perpetual inventory system. Calculate ending inventory and cost of goods sold for January using (1) FIFO, and (2) average cost.

What is the efficiency gain that would result from this tax : Relative to the no-regulation status quo, what is the efficiency gain that would result from this tax. Delineate and refer to relevant sections of the diagram. With reference to the diagram, explain why this tax fails to maximize the potential effici..

Decrease in demand for beef and decrease in supply of beef : Suppose we observe the following two simultaneous events in the market for beef. First, there is a decrease in the demand for beef due to changes in consumer tastes. And second, there is a reduction in supply due to cattle farmers selling their land ..

User Account

All Pages